Three quarters of UK residents likely to sell their homes in the next 12 months are contemplating energy efficiency changes to raise their property’s value, according to a new research from Snugg, a home efficiency innovation platform.
In the context of falling average house prices and higher mortgage rates, potential sellers are increasingly focusing on energy efficiency measures as a way to enhance their homes’ market appeal. However, despite this interest, the study uncovers a significant lack of understanding around available energy efficiency solutions.
Around 61% of likely sellers have previously researched government grants aimed at home heating improvements but found the information confusing. Additionally, 57% of respondents admitted they are unclear about how to make their homes more energy efficient. Misconceptions about government grants are widespread, with 65% assuming they are not eligible and 69% falsely believing such grants are only available to low-income households.
The Boiler Upgrade Scheme, which offers grants up to £7,500 for heat pump installations, serves as a counterexample to prevalent misunderstandings about non-means-tested government assistance.
Almost 68% of likely sellers stated they would not undertake energy upgrades without a government grant, advocating that the government should bear the costs of such eco-friendly transitions. Snugg’s online platform aims to clear this confusion by offering personalized energy improvement plans and connecting individuals to relevant grants and trusted local installers.
Robin Peters, CEO at Snugg, said: “Sellers’ lack of access to available information on home energy efficiency changes risks slowing an already spluttering property market – with home energy efficiency improvements known to increase value by up to £15,000. At the same time, homes in the UK rank amongst the worst in Europe for energy efficiency – responsible for more than a fifth of the UK’s CO2 emissions.”
He added: “It’s little wonder people are confused when current grant schemes are uncoordinated and the government’s ever-shifting position on net zero provides little certainty or clarity to homeowners. It’s vital that we ensure everyone has access to the knowledge needed for simple and affordable home changes that can both help boost the property market and accelerate our transition to net zero.”
The research also highlights broader gaps in understanding among the UK populace. Only 35% of Brits understand the workings of energy-efficient heat pumps, compared to a 70% understanding of gas boilers. Moreover, 42% are unaware of their home’s Energy Performance Certificate (EPC) rating, and almost a fifth (16%) had never heard of an EPC before participating in the survey.
The lack of awareness is most acute in the North East of England, followed by the East of England, making the need for effective and accessible information even more crucial.
